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Philippines’ GDP to grow at 5.1% in 2026: OECD
“The Philippines’ economy has demonstrated remarkable strength and resilience: since 2010 output has more than doubled and poverty has more than halved,” OECD secretary-general Mathias Cormann said, presenting the Survey in Manila alongside the Philippines’ secretary of finance Frederick D Go. “Ambitious reforms to strengthen competition and formal job creation are needed to sustain income growth and raise living standards. In parallel, stronger efforts on climate change adaptation would reduce the economic, social and financial risks from extreme weather.”
The Philippines’ GDP is projected to grow 5.1 per cent in 2026 and 5.8 per cent in 2027, with inflation at 2.6–3.0 per cent.
Strong fiscal management, pro-competition reforms, and improved social protection are recommended to boost productivity, formal employment, and public spending efficiency.
Investments in resilient infrastructure are also urged to support inclusive economic growth.
Strong fiscal discipline would put public debt on a prudent path. Phasing out value-added tax exemptions for private healthcare, education, and senior citizens, combined with targeted social transfers, would optimise taxes, transfers and revenue collection. Addressing corruption in public investment would improve spending efficiency as well as the business and investment climate.
Pro-competition reforms are key to boost productivity growth, especially in the electricity and telecommunications sectors, where weak competition keeps prices and input costs high for the rest of the economy. In electricity, reforms need to prioritise effective separation between network infrastructure and energy generation. In telecommunications, open-access network rules that require incumbents to share infrastructure at regulated tariffs could allow households and firms to benefit from lower prices. Streamlining administrative procedures across the economy, including for foreign investors, would stimulate further investment, the survey said.
A unified, multi-tiered social protection system, with universal core benefits funded by general tax revenues and top-up benefits financed by progressive social contributions, would enhance social protection and incentives for formal job creation. Aligning minimum wages more closely with regional productivity would reduce the shares of the workforce working informally and earning less than the minimum wage.
Fibre2Fashion News Desk (RR)